Apartment and Rental Properties - rental property

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pregio
10-06-05, 05:17 PM
i plan to purchase a townhouse and use it as a rental property. what is the percentage of the total cost should i allocate to the land and to the building? thank you.

mitch17
10-07-05, 07:40 AM
The bulk of the costs is PITI - principal, interest, taxes & insurance. You'll have to check taxes and insurance costs yourself, as they can vary quite a bit. Keep in mind that the older the unit is, the more you will have to allocate to maintenance and repairs. We spend about 60% of what we take in as rent on the mortgage (principal & interest) alone.